Commercial banks across Nigeria have begun charging customers N100 per N20,000 withdrawal from their on-site Automated Teller Machines (ATMs) and N600 for off-site ATMs, following a directive from the Central Bank of Nigeria (CBN). The new fee structure was announced in a circular dated February 10, 2025, and took effect on March 1, 2025.
Under the updated fee structure, withdrawals from a customer’s own bank ATMs remain free. However, customers using ATMs of other banks will now pay a charge of N100 per withdrawal of N20,000 or less at on-site ATMs. On-site ATMs are those located within or directly affiliated with a bank branch.
The CBN clarified that Nigerians withdrawing less than N20,000 from another bank’s ATM will still be charged N100 per transaction. This means that customers will incur a flat fee of N100 for withdrawals of N20,000 or less from other banks’ ATMs.”
Off-site ATMs, which are positioned outside bank premises in locations such as shopping malls, fuel stations, and other public spaces, will attract an additional surcharge of up to N500 per transaction.”
For international ATM withdrawals, charges will be based on cost recovery, meaning customers will bear the exact fee applied by the international acquirer.The Central Bank of Nigeria introduced the new charges due to “rising costs and the need to improve the efficiency of ATM services in the banking industry.”
The move aims to help banks cover their operational costs and maintain the ATM infrastructure. The implementation of the new ATM withdrawal fees is expected to affect millions of Nigerians who rely on ATMs for their daily transactions. While the fees may seem nominal, they could add up for frequent users, highlighting the need for alternative payment methods and more efficient banking services.
